Update 3:45 PM: The Trib’s Chris Metinko covers prospects for a Raiders move to Santa Clara. For now, the Raiders are dealing solely with Oakland/Alameda County. If you want to read into the situation, you can gather that the Raiders are – at least until their lease expires – in the catbird seat. They don’t have to commit to anyone for some time to come. Best of all, if the 49ers and Santa Clara come up short into terms of fundraising goals, the Raiders’ contribution could come in and salvage the project. However, you can bet that the Raiders will use that leverage to extract the very best deal possible. Only the NFL could make the Raiders come to the table sooner than they’d like.
Also: the 49ers have launched a new stadium website. It has a bunch of dead links and nothing but Flash-based content right now (sorry iPad users). It’s safe to assume that more content will be added in the coming months.
Today the world is a little different. The 49ers now have a stadium site, an approved EIR, and the approval of Santa Clara voters to build a stadium next their practice facility and Great America. On Gary Radnich’s radio show today, he and reporter Dan Dibley are having a lively debate about stadium options. Dibley pretty much nailed the sentiment on the skeptical side when he said that the NFL will not give the lion’s share of funding ($490 million) to a single team’s stadium. If the NFL holds the purse strings (which is not quite a given because of the ongoing CBA talks), it makes little sense for the league to throw $1 billion combined at two teams. The practical path is for Roger Goodell to urge the Raiders to move to Santa Clara along with the Niners. It would make the revenue projections much more reasonable.
One thing I’m curious about is if the NFL forces the issue, how will it determine revenue sharing for the second team? While the term sheet is written to make it appear that the Niners are taking the risk, in reality it’s the Stadium Authority that will have the most risk of revenue shortfalls.
ARTICLE 16. SECOND TEAM
Section 16.1 Second Team. 49ers Stadium Company will have the right to enter into a sublease with a second NFL team (“Second Team”), on terms and conditions consistent with and subject to the Stadium Lease to allow the Second Team to play its home games in the Stadium, subject to the following conditions:
(a) Repayment of Upfront Investment. Prior to the date that the Second Team plays its first home game in the Stadium, the Agency will receive an amount equal to the Agency Upfront Investment, which, as provided in Section 7.4 above, is estimated under current economic conditions to be approximately Twenty-Eight Million Dollars ($28,000,000).
(b) Repayment of Advance. 49ers Stadium Company will pay to the City or Agency prior to the date that the Second Team plays its first home game in the Stadium an amount equal to all the tax increment previously paid to 49ers Stadium Company as payment on the principal amount of the 49ers Agency Advance.
(c) Forgiveness of 49ers Agency Advance. From and after the date the Second Team plays its first home game in the Stadium, 49ers Stadium Company will have no further right to receive tax increment and will forgive all principal and interest of any outstanding 49ers Agency Advance.
(d) Additional Fixed Ground Rent. Commencing in the first year the Second Team plays its home games at the Stadium, the Stadium Authority will pay to the City, as additional Fixed Ground Rent (“Second Team Fixed Ground Rent”), One Million Dollars ($1,000,000) per year. Beginning in the eleventh year of Second Team occupancy, the Second Team Fixed Ground Rent will equal One Million One Hundred Thousand Dollars ($1,100,000) per year, and such amount will, provided the Second Team continues to play its home games at the Stadium, increase One Hundred Thousand Dollars ($100,000) every five (5) years thereafter during the initial term of the Stadium Lease. For each extension of the Ground Lease, the Second Team Fixed Ground Rent payment will increase by Eighty Thousand Dollars ($80,000) for the term of the extension. As Second Team Fixed Ground Rent will be included in Fixed Ground Rent, such amount will be taken into account in calculating Reimbursable Expenses as provided in Section 12.1(i) above, and a portion thereof will be credited against Performance-Based Rent as provided in Section 4.3(b)(i) above.
(e) Reimbursement of Developer Fees. 49ers Stadium Company will reimburse the Agency for the share of development fees paid by the Agency to the City’s enterprise funds as of a result of the construction of the Stadium as provided in Section 6.4 above, estimated to be approximately One Million Seven Hundred Thousand Dollars ($1,700,000).
(f) Capital Costs. 49ers Stadium Company will be responsible for all additional capital costs and additional Reimbursable Expenses required to accommodate a Second Team, except that the Capital Expenditure Reserve may be used to the extent consistent with the Capital Expenditure Plan. There would be no additional investment required by the City or Agency.
(g) Additional Capital Expenditure Reserve Deposit. As provided in Section 14.1(c) above, each year that a Second Team plays its home games in the Stadium, the Stadium Authority will fund, as an additional Stadium Operating Expense, the Second Team Capital Reserve Deposit in the initial amount of One Million Dollars ($1,000,000), escalated at the rate of three percent (3%) per year thereafter.
From this, we can see that both the 49ers and the Stadium Authority (by extension the City) have incredible incentive to lure the Raiders south. But as usual in the lead up, we have no idea what the actual revenues to the either team would be. What would the Raiders’ lease look like? Surely the 49ers, in getting the deal done, would win a controlling share of revenue. How attractive would the lesser share be for the Raiders? There has to be a sliding scale from which the Raiders would view a stadium-sharing situation in Santa Clara, and it’s expected that there’s a threshold that they wouldn’t cross, lest it be a bad deal for them. That’s where it would make sense that the NFL steps in to make the whole thing square for both teams. If history’s a guide, the Giants and Jets have a 50-50 split at the new Meadowlands stadium to open this fall, and the negotiations were particularly contentious. I would be surprised if Al Davis took being a tenant to a 30-year-old landlord easily. Then again, he doesn’t have many choices, does he?